Your Guide to Staying Safe with Mobile Loans in Kenya
In Kenya today, mobile loans have become part of everyday life. Whether you’re looking to sort out a sudden hospital bill, fix a boda boda, or even top up your stock, these apps are everywhere, ready to lend. But as we say here, “not all that glitters is gold.” For every legit lender, there’s another shady app waiting to trap you with crazy fees and harassment. So how do you keep yourself safe?
Why You Need to Be Extra Careful
Since 2022, the Central Bank of Kenya (CBK) made it a must for all digital lenders to be licensed under the Digital Credit Providers Regulations. This means if an app doesn’t have that CBK license, it could be trouble. Just because an app is on Google Play Store doesn’t mean it’s safe. Always start by checking if they’re on the official CBK list.
Licensed vs. Rogue Lenders
| Feature | ✅ Licensed Lender | ❌ Rogue Lender |
|---|---|---|
| Fees | Transparent, no upfront payment | Asks for fees before giving you any money (registration, CRB, approval fees) |
| App Permissions | Only asks for what it needs (like camera, maybe location) | Wants access to your contacts, SMS, gallery |
| Terms | Shows interest, total repayment & due date clearly | Hides real costs, confuses you with vague words |
| Customer Care | Has an office you can find, landline, official email | Only a mobile number or random Gmail |
7 Red Flags to Watch Out For
Before you even think of downloading a loan app, look for these warning signs:
- They want you to pay some money first. That’s classic fraud.
- Their name is missing from CBK’s licensed list.
- They don’t show you exactly how much you’ll pay back.
- They ask for your contacts, SMS, or gallery. That’s for shaming later.
- They promise “guaranteed approval” and rush you with countdowns.
- No proper address or only a mobile number. Who will you chase if there’s a problem?
- They send you an APK via WhatsApp instead of using Play Store. That’s risky stuff.
Quick Note on App Permissions
| Permission | Do They Really Need It? | Why Be Careful |
|---|---|---|
| Contacts | No way | Used to call & shame your friends & family |
| SMS | No | Reads your M-Pesa messages, private chats |
| Gallery | No | Some use your photos to threaten you |
| Camera/Location | Sometimes okay | For taking a selfie or confirming you’re in Kenya |
How to Confirm They’re Licensed by CBK
- Visit the Central Bank of Kenya website.
- Look under publications or press releases for the list of licensed digital lenders.
- Use Ctrl+F to find the lender’s name. If they’re not there, don’t even try them.
If You’ve Already Been Tricked
Don’t panic. Kenya has laws to protect you. Here’s what to do:
| Step | What to Do | Who to Call |
|---|---|---|
| 1 | Report unethical tactics like shaming | Central Bank of Kenya (CBK) |
| 2 | Report threats & fraud | DCI Cybercrime Unit |
| 3 | Revoke permissions, uninstall the app | Your phone settings |
FAQs – Fast Answers
Q: Are all loan apps on Play Store safe?
A: No. Only CBK-licensed apps are truly legit.
Q: Can a loan app legally access my contacts?
A: No. Kenyan law bans lenders from using your contacts to threaten or shame you.
Q: What if the lender is not on the CBK list?
A: That’s illegal. Stop giving them your info, report if they threaten you, revoke permissions, and uninstall.
Stay sharp and keep your hard-earned money safe. As we say — “Mjinga akierevuka, mwerevu yu mashakani!”